Ormat Technologies, Terra-Gen commission 655 MWh of battery storage in California

In California, in San Bernadino County, developer Terra-Gen’s Lockhart CL I and II BESS has reached commercial operations. The 128.7 MW/514.8 MWh project will provide enough electricity to supply more than 128,000 homes for four hours.

The system comprises 164 battery enclosures and uses an existing gen-tie line connecting to South California Edison’s Kramer Junction Substation. The use of these resources is fully contracted under two long-term resource adequacy agreements with Pacific Gas and Electric Company.

Gus Luna, chief development officer for Terra-Gen said the expansion was designed to “fit seamlessly with the existing facility and maximize the shared infrastructure.”

John O’Connor, CEO at Terra-Gen added that Lockhart will “help strengthen the California grid while also having a meaningful positive impact on climate change.”

Terra-Gen is owned by Emirati energy firm Masdar and Igneo Infrastructure Partners. It has 5.6 GWh of energy storage facilities across 32 sites in the United States, with most located in California and Texas.

Meanwhile, United States geothermal and waste heat recovered energy generation (REG) company Ormat Technologies has announced the start of commercial operations at its first hybrid solar and storage project, Arrowleaf, in California.

Arrowleaf combines 35 MW/140 MWh of energy storage capacity with approximately 42 MW of solar generation capacity. It operates under a long-term tolling agreement with San Diego Community Power and expands Ormat’s operating portfolio to around 1.7 GW.

“Arrowleaf marks a major milestone for Ormat, as it is our first hybrid solar and energy storage project,” said Doron Blachar, Chief Executive Officer of Ormat Technologies.

“With this project’s tax benefits having been monetized in December 2025, we successfully collected over $160 million of tax credits in 2025, exceeding our full-year target,” added the CEO, referring to Ormat’s hybrid tax equity partnership with Morgan Stanley Renewables Inc., which resulted in approximately $38 million in upfront proceeds.

“This accomplishment further strengthens our balance sheet and cash flow trajectory while supporting continued growth across all of our segments. Arrowleaf’s commercial operation extends our positive momentum into 2026 as we continue advancing toward our 2028 growth targets,” Blachar concluded.

Based in Reno, Nevada, Ormat specializes in geothermal, energy storage, and waste heat REG. Some of its existing BESS projects in the United States include the 80 MWh Pomona 1 BESS in California, and two 20 MWh BESS projects in New Jersey.

Its United States energy storage portfolio totals 385 MW. Ormat also has several international geothermal projects, including its flagship 330 MW Sarulla project in Indonesia.